# Average revenue per user (ARPU): formula and example

> Calculate average revenue per user with a stated population and period, then see why other sources may use different denominators.


**Average revenue per user (ARPU) is the average revenue generated by a defined user population over a stated period.** The basic calculation relates included revenue to a group of users you also need to define. Read the figure with its period, revenue basis and denominator.

## The formula depends on who counts as a user

As a general description, you can write:

**ARPU = revenue included for the period ÷ users in the chosen population for that period.**

That formula needs an operational definition. Google Analytics, for example, calculates its ARPU as total revenue divided by active users. In that metric, revenue includes purchases, in-app purchases, subscriptions and ad revenue, less refunds. That is GA4's definition; other organisations publish their own populations and periods.

## A fictional calculation using GA4's definition

Suppose an app recorded CLP 1,500,000 in included revenue during April and had 1,000 active users in the same period. The calculation is:

**CLP 1,500,000 ÷ 1,000 = CLP 1,500 per active user in April.**

The example is fictional. Its denominator includes active users for the period, whether or not each one purchased. Switching to users who purchased changes the metric and requires checking the numerator too. In GA4, ARPPU divides **purchase revenue** by **active users who made a purchase**. Dividing ARPU’s total revenue —which may include advertising— by purchasers does not necessarily reproduce GA4’s ARPPU.

The [official GA4 dimensions and metrics table](https://support.google.com/analytics/table/13948007?hl=en) documents the formula and its components. For the example to work in an actual report, the team would need purchase and ad revenue events configured for Analytics, and a consistent approach to refunds.

## Why ARPU figures may not be comparable

One company might divide quarterly revenue by average active users. Another might use monthly revenue and unique users in that month. Pinterest, for example, reports ARPU by region using that period's revenue divided by average monthly active users in the region. The company calculates that average from the user count at the end of the period and the count before the period began. Its [annual report filed with the SEC](https://www.sec.gov/Archives/edgar/data/1506293/000150629326000021/pins-20251231.htm) documents the choice. It illustrates one company’s reporting method, not a rule for other businesses.

Before comparing ARPU, record:

- **Period:** month, quarter or another window, including time zone if it affects the cutoff.
- **Revenue:** purchases, subscriptions, ads, refunds and adjustments included in the numerator.
- **Population:** active users, unique users, customers or paying users.
- **Source:** the report, property and setup used to collect the figures.

If any of those bases changes, record the change next to the result. ARPU may move because pricing changed, the user mix shifted or measurement changed. The figure alone does not identify the cause or show margin, retention or profitability.

## What the result can answer

ARPU summarises average revenue per member of the stated population. It can describe observed revenue per active user in a period when the team keeps the definition consistent. It does not show the cost of acquiring that user or what remains after costs. For a return measured against advertising spend, [ROAS](/en/guides/return-on-ad-spend/) answers a different question.

If the denominator is zero or missing, the division does not produce an ARPU value. Record “not calculable” or explain the missing data; do not substitute zero, since zero revenue and no users are different conditions.

*The April figures are fictional and illustrate the calculation. GA4's definition and Pinterest's example come from sources with different scopes; neither is a universal financial standard.*

The cover is an AI-generated illustration.

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